SWISSCOM: SWISS GOVERNMENT SETS ACQUISITION LIMITS.

The Swiss government declared on December 21 that the Swiss telecoms operator Swisscom is not allowed to assume debts of more than five billion Swiss francs (euro 3.2 billion) for the purpose of investments or acquisitions. Swisscom can buy shares in telecommunication companies without universal service mandates "on the condition that these shares strengthen its activities in Switzerland or that they bring other advantages", added the Federal Council in a statement. The Swiss government, which currently owns 62.45% of Swisscom although has announced its intention to privatise the firm totally, set these conditions as part of Swisscom's strategic aims for the period 2006-2009. The Federal Council also stipulated that Swisscom should reduce its distributable reserves to 1 billion Swiss francs for the four year period through a pay-out of dividends to shareholders.

Swisscom's distributable reserves reached 3 billion Swiss francs at the end of 2005, announced the group in a statement. "By lowering these reserves with a redistribution policy, net debts will reach 1 million Swiss francs", it added. The operator also indicated that it...